Chapter 14

Vigorously Advancing
Science, Technology and
Innovation
Advancing science, technology, and innovation (STI) in the country through increased use of
scientific and technological breakthroughs will institutionalize improvements in production,
health, education, energy, and infrastructure systems, among others.

The government will promote and accelerate technology adoption and stimulate innovation to
advance the country’s STI. Four subsector outcomes are tracked namely STI in the
agriculture, industry, and services sectors improved; investments in technology-based start-
ups, enterprises, and spin-offs increased; creative capacity for knowledge and technology
generation, acquisition, and adoption enhanced; and open collaboration among actors in the
STI ecosystem strengthened (See Figure 14.1).

Figure 14.1 Strategic Framework to Leverage Science, Technology, and Innovation

1 | Socioeconomic Report 2017

Accomplishments
In general, the country’s performance in achieving the desired outcomes for the STI sector has been
moderate. Latest available data indicate that four out of nine targets with available data have been
exceeded1.

As part of developing a vibrant Intellectual Property Rights (IPR) culture in the country, the government
is strengthening the implementation of a Patent Incentive Package, providing funding support on
intellectual property protection, and conducting various awareness campaigns on the importance of
IPR. In 2017, the country reached the top 33 percent percentile rank in the World Intellectual Property
Organization (WIPO) – Knowledge and Technology Outputs Index, beating the top 34 percent target.
In terms of industrial designs, there were 909 registrations, surpassing the target of 542. However, in
2017, there were only 19 new Filipino patents and 455 new Filipino utility models registered, falling
short of the 33 and 594 targets, respectively2.

One of the main goals of the Plan is to support the development of the sectors that used to lag behind –
especially farmers, fisherfolks, and micro, small, and medium enterprises (MSMEs). For the STI sector,
the government targeted to provide start-ups and MSMEs with platforms for technology
commercialization such as the establishment of new technology business incubators (TBIs). This
pushed the number of TBI graduates to 56 in 2017, as compared to the 41 graduates recorded in 2016.

To foster a culture of inventiveness and creativity, government has been promoting STI and the creative
arts to young students. In Academic Year 2016-2017, the number of Science, Technology, Engineering,
and Mathematics (STEM) enrollees in higher education institutes (HEIs) reached 1.27 million, higher
than the target of one million enrollees for 2017.

Moreover, the country has established a total of 30 innovation hubs as of end-2017. Although this
slightly fell short of the target of 33, the 43 targeted innovation hubs for 2018 is still achievable as the
government seeks to strengthen STI infrastructure development.

Open collaboration among actors in the STI ecosystem is also being strengthened to some extent. In
2017, the government engaged 33 new Balik Scientists, only a tad lower than the target of 39. The
country is still on track of its target of top 50 percent in the University – Industry Collaboration
percentile rank (in the World Economic Forum Competitiveness Report), which already improved from
52.5 percent in 2016 to 51 percent 2017.

1
Only nine out of 26 indicators for Chapter 14 Results Matrices (RMs) have available data. The RMs can be accessed through:
www.neda.gov.ph/pdp-results-matrices/2017-2022/
2
Examples: For patents, apparatus for reducing the risk of developing decubitus ulcers and adjunct to treatment thereof on immobile patients
invented by Sonny Wilson R. Merioles and biogas from water lily invented by Dr. Virgilio L. Malang and Yasmin E. Malang; For utility
models registration, combined motorcycle helmet and a locking mechanism by Miguel A. Timor and methods of preserving coconut water
and fruit extracts by Cristovin M. Caralde; for industrial designs registrations, LED streetlight luminaiare (Skyled V2 – Big) by Joel T. Alegre
and combined vertical axis wind powered turbine and solar power system by Engr. Tito J. Paalan.

Chapter 14 Vigorously Advancing Science, Technology, and Innovation | 2

Moving Forward
Technology adoption promoted and accelerated
Subsector Outcome: STI utilization in the agriculture, industry, and services sectors
increased

Outputs of STI activities are not brought to the market at once. The commercialization or the
transfer of the outputs of innovation activities to the mainstream market and to the public remains
difficult. Many innovation outputs lie dormant and underutilized. The information dissemination
activities particularly on available technologies remain low, while government campaigns are
fragmented.

Acknowledging these challenges, the government will aggressively facilitate promotion,

marketing, and commercialization of STI outputs. Higher budget will be earmarked for technology
transfer and commercialization programs such as science fairs, exhibits, invention contests, technology
transfer days, etc. Full use of the said budget will be ensured. The Technology for Innovation and
Commercialization Program will continue to provide financial and technical support for the
improvement and commercialization of research and development (R&D) results. In addition, the
Department of Science and Technology (DOST), in partnership with the Department of Information
and Communications Technology (DICT), will establish a central online repository of technology
information for the sharing of and access to technologies and knowledge. The government will also
actively promote the online repository to the public.

The Commisssion on Higher Education (CHED) with the Department of Trade and Industry (DTI), will
formulate Implementing Rules and Regulations guiding HEIs in intellectual property protection and
utilization based on sound intellectual property valuation, landscape analysis, and business analytics.
HEIs, state universities and colleges (SUCs), and research and development institutions (RDIs) will
also be encouraged to put up their own technology licensing office to increase the commercialization
of R&D outputs.

CHED will also monitor knowledge generation in CHED-funded HEIs doing research and development
and extensions by implementing a real-time monitoring system based on quantitative indicators under
the R.I.P.E. metrics3.

To facilitate the process of knowledge creation, technology transfer, and transformation of research
results into products and services, the Intellectual Property Office of the Philippines (IPOPHIL) will
strengthen the Mind to Market Program which assists individuals and enterprises by linking them to a
network of services (e.g., protection, commercialization, etc.) of partners (e.g., government, private
sector, etc.). The Intellectual Property Hub and Spokes system will also be promoted to provide
intellectual property infrastructure, enable linkages, and facilitate transactions among partners.

3
Research management, leadership, and ethics; Integration in pedagogy leading to new understanding and coaching of young scholars;
Productivity, innovation, research excellence, and global visibility; Engagement with the general public, local community, and industry.

3 | Socioeconomic Report 2017

Disruptive4 and/or emerging technologies may change the way things are done, create new
industries and new jobs, and at the same time, cause job losses (e.g., low-skilled, repetitive jobs,
assembly workers, as well as jobs in the IT-BPM, banks, advertising, health, research and
development, and retail sectors). The rate at which these technologies are being developed/adopted
in many countries is very fast. In contrast, the country has not yet fully developed its own capabilities
to produce/adopt these technologies. This constrains the country’s ability to utilize disruptive
technologies to raise economic growth potential.

Thus, the government will utilize promising and potentially disruptive technologies and minimize
its potential adverse impact. The country will develop its capabilities to produce and utilize these
types of technologies by conducting capacity building, conducting R&D programs, and adopting
programs on the internet of things, artificial intelligence, big data analytics, robotics, 3D printing,
nanotechnology, next-generation genomics, digital health, cloud computing, and blockchain, among
others.

Subsector Outcome: Investments in STI-based start-ups, enterprises, and spin-offs

increased

The lack of awareness on the results of R&D activities and the lack of government’s support
mechanisms to help firms become more innovative still persist. Hence, technologies are not yet used
extensively among MSMEs.

Accordingly, the government will strengthen support for spin-offs, start-ups, and MSMEs in the
regions by providing, among others, technology business incubators, consultancy services, and
financial support. It will establish more innovation hubs and shared service facilities; and undertake
efforts to improve R&D productivity and help bring down the costs of engaging in innovation activities.

The Small Enterprise Technology Upgrading Program (SETUP) will be relaunched as SETUP 2.0 to
include both firm and industry-level interventions, as well as encourage smarter and more productive
MSMEs. The implementation of the Startup Research Grant Program will be scaled up to help
overcome R&D roadblocks, strengthen intellectual property protection, establish initial market traction,
and refine business models. Enhancements to the program should be geared towards translating early
stage technologies into market-ready products.

The Business Innovation through Science and Technology (BIST) for Industry Program will facilitate
the acquisition of high-tech equipment and foreign technologies by Filipino companies for their R&D
activities. It will enhance their technological capacity to undertake R&D through funding, technology
licensing, and acquisition of patent rights. Moreover, the Inventor Assistance Program will be bolstered
to connect small businesses and inventors to patent attorneys who provide pro bono legal assistance in
securing patent protection.

4
Disruptive technologies can be defined as new ways of doing things that disrupt or overturn the traditional methods and practices of
conducting business (e.g. development of internet) (D. Chishakwe, W. Smith. 2012. An analysis of the impact of disruptive technology on the
success of small and medium enterprises (SMEs) in a developing nation. A case of King Williams Town, South Africa”

Chapter 14 Vigorously Advancing Science, Technology, and Innovation | 4

Innovation stimulated
Subsector Outcome: Creative capacity for knowledge and technology generation,
acquisition, and adoption enhanced

Increasing R&D expenditure continue to be a great challenge. The country remains one of the
lowest among ASEAN countries in terms of R&D gross expenditure as a percentage of gross domestic
product (GDP). It has stayed at a low level (less than 0.20 percent of GDP) and barely expanded for
some time, preventing the country from taking full advantage of technological developments that could
be leveraged to boost growth in the agriculture, industry, and services sectors. The 1% R&D spending
share to GDP benchmark recommended by the United Nations Educational, Scientific, and Cultural
Organization (UNESCO) is still far from being achieved.

R&D budget and spending will be increased across regions to support R&D activities on new and
emerging technologies. The government will also strongly pursue the implementation of the
Harmonized National R&D Agenda (HNRDA) 2017-20225. Roadmaps to harness identified new
technologies such as the internet of things, artificial intelligence, big data analytics, and nanotechnology
will be formulated in consultation with the private sector. Approval and rollout of these roadmaps will
be targeted in 2019.

The government will conduct and encourage research activities in the Philipine (Benham) Rise and
West Philippine Sea. Marine scientists and geologists will be trained and research vessels will be
acquired to enable deep sea resource assessment and monitoring and to conduct studies on
oceanography and connectivity, coastal erosion and bathymetry, and connectivity of reefs along Eastern
Luzon and Benham Bank.

The country is still characterized with weaknesses and inadequacy in STI human capital. Latest
data showed that the country has only 270 researchers for every one million population in 2013. This
is below the UNESCO norm of 380 per million population and the 1,020 researchers per million
population average in East Asia and the Pacific.

More funding will be provided for Science, Technology, Engineering, Agriculture, and
Mathematics (STEAM) scholarships. S&T scholarship programs6 will be strengthened to encourage
students to pursue STEAM. Specialized STI training will also be expanded. The Student Financial
Assistance Program will be used to shephered more scholars/enrollees to get into STEAM areas.
Improving the K to 12 Transition Program should also lead to more study grants for STEAM scholars
(See also Chapter 10). Moreover, the government should establish more science high schools and
science sections institutions to help increase STI employment in the country.

CHED will launch new policies and standards for Philippine Graduate Education that will produce
advanced competencies, spur leadership and innovation, drive scientific and technological growth, and
creative learning. It will promote an ecosystem for digital technology in education, such as the
development of online and blended learning, the introduction of massive online open courses, and other
opportunities for open online education. To promote awareness and appreciation of STI, the

5
It articulates the country’s priorities and guides public investment in R&D while ensuring a cohesive convergence and integration of R&D
efforts. HNRDA 2017-2022 is organized into five sectors namely National Integrated Basic Research Agenda; health; agriculture, aquatic,
and natural resources; industry, energy, and emerging technologies; disaster risk reduction and climate change adaptation.
6
Example, Expanded Specialized Science Secondary Education Scholarship; Expanded Undergraduate S&T Scholarships for Inclusive
Development; Expanded S&T Graduate (Masters/PhD) Scholarships, etc.

5 | Socioeconomic Report 2017

government will aggressively promote the DOST to the public through various marketing strategies
including quad media.

The country still lacks STI infrastructures, while existing ones need upgrading/improvement.
Furthermore, research institutions are still not widely dispersed across the regions and are still
concentrated in Luzon.

The government will upgrade and establish research facilities to accommodate anticipated
increase in R&D activities. In partnership with different sectors, the government will build more Fab
Labs7, laboratory facilities, R&D centers, and technology parks to increase R&D activities and hire
more researchers, scientists, and engineers. Burdensome processes under the procurement law will be
removed to facilitate the acquisition of equipment and other materials needed for these infrastructures.
The OneLab Network, a platform which integrates DOST research laboratories and other laboratories,
will be strengthened to provide easy access to testing and calibration services. The implementation of
the ICT and Electronics R&D for Resilient Infrastructures project will also be strengthened.

The following programs under DOST’s Science for Change Program will also be boosted:

1. Niche Centers in the Regions for R&D (NICER) to capacitate regional HEIs through R&D
funding that will improve regional research and S&T infrastructure, enabling HEIs to integrate
regional development needs with R&D and local resources.

2. R&D Leadership (RDLead) will engage experts with strong leadership, management, and
innovative policy-making proficiency to strengthen research capabilities of HEIs or RDIs. The
experts will take the lead in establishing new and upgrading existing R&D centers and RDIs
under the NICER Program. HEIs will also be capacitated in improving and speeding up the use
of research results in addressing the pressing challenges in agriculture, industry, and emerging
technologies.

Currently, data has not been sufficient to track the STI sector’s progress and performance (e.g., absence
of data on the following: R&D expenditure per sector; R&D budget utilization rate; technology
transferred/commercialized; number of researchers, scientists and engineers;
collaborations/cooperations between the government, industry, and academe; activities/pursuits of
TBIs and STEM graduates; and number of STI based start-ups). As a result, there are no existing targets
for some indicators. The lack of these data impedes the anticipation of potential problems and better
assessment of government interventions for the sector.

As a basic element for the formulation of national R&D and innovation strategies, the government will
accelerate the process of gathering accurate and timely data to track the developments in STI. This will
entail further strengthening of the Inter-Agency Committee on Science, Technology, and Innovation.

7
FabLabs or fabrication labs are “technical pro-typing platforms for innovation and invention that allow local manufacturers to make
prototypes and products such as equipment, machinery, and electronic gagets; create sclare models; illustrate graphic designs; and mass-
produce products, among others” definition retrieved from http://www.manilatimes.net/dti-launches-fabrication-laboratory-in-
bohol/96298/

Chapter 14 Vigorously Advancing Science, Technology, and Innovation | 6

Subsector Outcome: Open collaboration among actors in the STI ecosystem
strenghthened

Problems in collaborative linkages among the government, academe, and industries still exist. The
difficulty in finding cooperation partners for innovation activities is cited among the barriers to
innovation8. Limited linkage between industry and academe in product development, incubation
facilities, and R&D activities is also emphasized9. This is one of the reasons why many R&D outputs
of the academe are not market-oriented10.

The government will strengthen coordination among the academe, industry, and the government.
Linkages between knowledge producers and users will be bolstered. It will establish STI-related
collaborations with business/entrepreneurial schools, firms, and other institutions. CHED will also
establish a higher education network for research and innovation that will strengthen innovation and
academe-industry partrnerhip. The network will push for equitable regional growth of RDI funding and
outputs and support HEIs towards their development as veritable research universities capable to meet
international standards.

The Collaborative R&D to Leverage Philippine Economy (CRADLE) Program will be promoted to
help create a synergistic relationship between the academe, as producer of knowledge, and human
resources and the industry, as translators of technologies to real world applications.

The implementation of the Converge, Network, and Collaborate for Economic and Technological
Development (CONNECT) will be augmented to facilitate the utilization and commercialization of
intellectual property assets through the provision of opportunities for the academe and industry to meet,
interact, and discuss possibilities of collaboration, either in terms of research or technology utilization,
or commercialization.

International R&D collaborations on the following areas will be pursued: a) nanotechnology, intelligent
transport system, drug discovery, modern agriculture, food processing, electronics and computer, space
technology, metrology, and innovative start-ups; b) nuclear science; and c) building start-up ecosystem.

The government will continue to encourage foreign experts to share their knowledge and expertise with
the government, academe, and industry. The Balik Scientist Program and other related initiatives will
be strengthened including: a) the passage of the Act Strengthening the Balik Scientist Program11; b)
reduction, if not elimination, of hiring restrictions (e.g., Civil Service Commission [CSC] and
Professional Regulation Commission [PRC] rules on hiring foreign experts and overseas Filipinos with
foreign citizenship); c) effective implementation of the Inclusive Innovation Industrial Strategy (i3S)
and Inclusive Innovation Roadmap; d) matching of priority sectors and technologies with the skills of
the awarded Scientists under the program; and e) ensuring appropriate funding for the enhanced
program.

8
Mentioned in the results of the 2015 Philipine Institute for Development Studies Survey of Innovation Activities
9
Department of Trade and Industry Policy Brief Series No. 2017-05: Philippine Inclusive Innovation Industrial Strategy
10
N. Catibog. Challenges Faced by Government Research Institutions & Public Universities in the Commercialization of Agricultural
Innovation in the Philippines. Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development. 2016.
11
Seeks to strengthen the scientific and technological human resources of the academe, public institutions, and domestic corporations

7 | Socioeconomic Report 2017

The i3S will be implemented to help grow innovative and globally competitive manufacturing,
agriculture, and services sectors while strengthening their linkages to the domestic and global value
chains. It prioritizes the growth and development of 12 major industries12. It entails the establishment
of an inclusive innovation and entrepreneurship ecosystem that would strengthen industry-academe
collaboration focusing on market-oriented research; revision of the engineering curricula; equipping
universities to carry out research relevant to industries; encouraging intellectual property protection;
and providing incentives (i.e., tax credit, accelerated depreciation, etc.) and shared facilities for rapid
prototyping and demonstration.

The government will also formulate the Inclusive Innovation Roadmap that will lay down the vision,
goals, targets, priorities, and strategies to be implemented to create a collaborative and innovative
ecosystem.

Recommendations
In addition to the strategies that are currently implemented to advance the country’s STI sector, NEDA
also recommends the following strategies to ensure that initial efforts are sustained.

Table 14.1. Supplemental Strategies to Advancing Science, Technology, and Innovation

Challenges Recommended Strategies Implementing Agency

Sector Outcome: Technology adoption promoted and accelerated
Subsector Outcome: STI Utilization in the agriculture, industry, and services sectors increased
 Outputs of STI activities are not brought to the  Pursue more promotions and advocacy activities for  CHED/Department of Education
market at once. STI by organizing regular fora, fairs, and exhibits
- The commercialization/transfer of the outputs of which feature the innovation activities and outputs of
innovation activities to the mainstream market the government, primary and secondary schools,
and to the public remain difficult. SUCs/HEIs
- Many innovation outputs lie dormant and
underutilized.
- Low information dissemination activities,
particularly on available technologies and
fragmented government campaigns
Subsector Outcome: Investments in STI-based startups, enterprises, and spin-offs increased
Sector Outcome: Innovation stimulated
Subsector Outcome: Creative capacity for knowledge and technology generation, acquisition, and adoption enhanced
 Increasing the R&D expenditure continue to be a  Identify capacity constraints to undertake research  NEDA, DOST, CHED, DTI,
great challenge, preventing the country from taking in the academe – public and private, industry, DBM, CSC
full advantage of technological developments that business, government
can be leveraged to boost growth in the agriculture,
industry, and services sectors.

12
The major industries are: automotive; electronics and electrical; aerospace parts; chemicals; iron and steel and tool and die; garments,
textiles, and furniture; shipbuilding; tourism; IT-business process management, particularly knowledge process outsourcing and E-
commerce; agribusiness; construction; and transport and logistics.

Chapter 14 Vigorously Advancing Science, Technology, and Innovation | 8

  Disruptive and/or emerging technologies may
change the way things are done, create new
industries and new jobs, and at the same time
cause job loss.
- The country has not yet fully developed its own
capabilities to produce/adopt these technologies,
constraining our ability to utilize disruptive
technologies to increase potential economic
growth.
 Implementation of changes in the higher education
curriculum of the country takes too long due to
constraints in hiring of qualified instructors,
purchasing/upgrading of equipment, and
creating/amending policies in SUCs and HEIs.
 Brain drain problem in the country continues as the
supply of STEM graduates exceeds local demand.
- Many researchers, scientists, and engineers
cannot find opportunities in the country, hence they
seek employment opportunities abroad.
 Lack of national framework that integrates sustainable
consumption and production initiatives in the country
(See also Chapter 20).
 Insufficient data to track the STI sector’s progress
and performance, which impedes the anticipation of
potential problems and better assessment of
government interventions for the sector.
Subsector Outcome: Open collaboration among actors in the STI ecosystem strengthened
 Restrictive regulations delaying the implementation
of R&D programs and projects, including CSC and
 Reduce, if not eliminate, restrictions in hiring
PRC rules which make hiring of foreign and
foreign experts
overseas Filipinos with foreign citizenship difficult.
9 | Socioeconomic Report 2017
 Formulate roadmaps on the other promising and  DOST/DTI
potentially disruptive technologies such as
advanced robotics, next-generation genomics,
digital health, autonomous and unmanned vehicles,
energy storage, blockchain, cloud computing,
among others.
 DOST/IPOPHIL/DTI/CHED/DICT
 Include R&D on new/emerging technologies in the
research areas under the HNRDA 2017-2022.
 Conduct activities that will ensure the effective
implementation of the roadmaps on selected
disruptive technologies (e.g. technology transfer
events, promotional activities, central online
repository of technology information, enhanced
collaboration in the STI ecosystem, etc.)
 Make changes in educational curriculum to
prevent the potential adverse impacts of disruptive
technologies.
- For affected industries, retraining programs
and skills development will be conducted to
help workers develop and enchance their skills
to enable them to adapt to other industries
 Address the constraints in changing/updating  CHED/DEPED
curriculum on STEAM to respond to disruptive
technology and other advancements.
 Craft a strategy/plan/roadmap on how to establish  DOST/DTI
industries that can absorb researchers, scientists,
and engineers (e.g., similar to the Silicon Valley).
 Implement programs/projects on how STI can be  DOST
utilized to establish a circular economy in the
country
 Identify new members of the Inter-Agency  PSA / DOST
Committee on STI Statistics to ensure that statistics
needed to monitor the performance of the STI
sector will be idenitifed and produced.
 Resolve problems encountered in producing the  PSA
data needed for the STI sector.
 Implement the NEDA R&D funded project on
“Formulating a Statistical Framework for and
Improving Statistics on STI.”
 DOST and other NEDA Board
Member Agencies